Ebay and their sister financial site, Paypal, seem to have little regard for the laws of the land. Ebay owns Paypal and pretty forces a monopoly on Ebay buyers and sellers to use this financial service which acts much like a banking service, while at the same attempting to avoid normal banking regulations and banking regulators. Now these two companies that thumb their noses at little technical things such normal banking ethics have a new scheme; to lock up sellers payments from buyers up to 21 days while Ebay and Paypal can use these millions and millions of dollars to make interest free investments before giving sellers their money owed. It’s like some grand illegal loan scheme. You sell your things on Ebay, pay both high seller or user fees, then both Ebay and Paypal conspire together to use your money for as long as 21 days, while you’re broke, can’t pay your bills, have to pay interest or late fees yourself on debts. Probably none of this is legal.
Ebay’s ownership of Paypa,l and two working jointly like is probably a violation on monopoly laws since their is little room for other payment services to operate in this closed system. Further, Paypal acts much like a bank, yet attempts to skirt banking regulations, which may also violate the law. Further, it may violate federal trade laws for the two jointly owned companies to obstruct seller payments for up to 21 days. This comes very close to criminal conversion of property or theft here. Ebay and Paypal operate over statelines as well as international lines. Doing so means that both services need to comply with federal regulations, yet both attempt to skirt banking or other regulations that probably apply because of the type of transactions both conduct.
Ebay may claim that it’s rules are intended to improve customer service, but don’t be fooled here. This is more naked profiteering by Ebay, to illegally borrow millions of dollars of sellers money and make investments or earn interest before paying sellers what was supposed to be their property to begin with. It is unlikely these new trade practices from Ebay would stand up in any court of law. They are simply more problems with a huge company that is sorely in need of better federal regulation and a split up of their monopoly arrangement with Paypal.